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Redundancy/Settlement agreement advice

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  • Redundancy/Settlement agreement advice

    Would really appreciate some advice on the situation outlined below - I'll try to keep it as brief as possible without missing out any pertinent facts.

    I've been in my current role for a short period of time. It was a newly created role when I took up post, and I am responsible for managing a central team who each provide support to one of four regions within the business.

    It's become clear that the arrangement isn't working, and as a result my role is being made redundant, and the members of my team will each be reporting directly into their region's chain of command. I've got absolutely no issue or argument with the role being redundant - it just is.

    I was advised last Friday (20th) that my role was at risk of redundancy. I was offered the option to take a voluntary redundancy that would include an ex-gratia payment of one month's gross salary and one month's PILON, and an agreement that I would work up until the end of April to ensure a smooth transition and handover. I was asked not to discuss the situation with my team or other colleagues until a final decision had been reached.

    I did a bit of research over the weekend to see how accepting a voluntary redundancy might affect any consultation period and attempts to try to prevent my needing to leave the business altogether, and initial results seemed to suggest that, even if voluntary redundancy was offered, the same efforts to find alternatives should still be considered.

    With that understanding, I advised my employer yesterday (Monday 24 March) that I'd be happy to accept the voluntary redundancy on the basis of the terms presented to me, and on the understanding that alternatives to redundancy would still be explored.

    About an hour later I got a call from HR out of the blue, saying that there had been a change of plan and my last day would now be the following day (i.e. today, Tuesday 24th April) subject to me signing and returning the agreement immediately. My PILON and ex gratia payment would be paid in March's payroll, and there would be no detriment to me. I pointed out that, in fact, there would be detriment because I'd lose the months wages I had been expecting to earn before leaving on 24th April, and effectively having one month less to secure alternative employment. I also queried another role within the organisation currently being advertised that I might be suited for, and was told that there would be no consultation period due to this being a voluntary redundancy.

    After some to-ing and fro-in they came back to me and said that they were willing to stick with the initial agreement that I would work until 24th April, after which I'd receive my PILON and ex-gratia payment as previously advised. [I'm pretty sure that what happened here is that they always intended today to be my last day but made a typo in the document they sent out which they then felt obligated to honour]. I said that I'd be happy to proceed on that basis, and they said they'd send over a document for me to sign confirming the arrangement.

    I was then sent what looked very much to me like a settlement agreement, but without any reference to independent legal advice needing to be obtained. I was asked to sign and return it by the follow day (i.e. today). I queried this, and was told that it might look like a settlement agreement from the wording, but that it isn't a settlement agreement, merely a document setting out the terms upon which my employment is ending (by way of voluntary redundancy), the payment I would receive, and my obligations around confidentiality etc. As such, they said, no legal advice was required for the agreement to be valid, and neither did they have any obligation to allow me reasonable time to consider the content in line with ACAS guidance. I was advised that I could, of course, seek my own legal advice on the document should I so wish. I was again told not to discuss the situation with any of my colleagues.

    This morning I was invited to another call to discuss 'next steps'. I was advised that following further consideration (eg in relation to the mistake I'm pretty sure that they made with the dates) that I would be expected to work only until the end of this week, after which I'd be put on gardening leave until 24th April. I said that that was fine (and had been anticipating it).

    With regard to when and how I should tell my team and other colleagues, I was advised that in accepting the enhanced settlement I would not be permitted to tell anyone within the organisation that my role had been made redundant, and instead I should tell them that I had resigned. They also said that that is the message they will be sending out to colleagues. They said that they would be sending me a revised 'not-a-settlement-agreement' to review and sign.

    I asked why the decision had been taken that it would be communicated within the organisation that I had resigned and why that was what I was required to tell people. I was told that because colleagues could become worried or anxious if they heard about a redundancy they did not want to worry anyone unduly.

    I said that I wasn't happy with this, as the clear inference from someone 'resigning' from a job without another role to go to (particularly as I had secured this job off the back of an 18 month really tough period out of work that anyone I'm connected with on LinkedIn would be aware of) was that it had been offered as an alternative to a dismissal on capability or disciplinary grounds, or to manage me out of the organisation for some other reason.

    Later in the day I was advised that, that I didn't need to tell people I'd resigned if I didn't want to, but neither could I tell them that my role had been made redundant (not sure what options that leaves me with!). They said that they would manage their internal communications as they saw fit (presumably by saying I'd resigned, as they had previously indicated). I pointed out that a lot of colleagues within the organisation are in my professional network and that this could be potentially damaging to my reputation.

    I raised that, in light of the further developments today, surely the agreement they are asking me to sign must now be considered a settlement agreement, but they maintained it isn't, and that I need to sign and return it by Thursday 26th otherwise they will revert to the compulsory redundancy process, under which I'd obviously just receive my one month's PILON.

    I've made an appointment for a free initial consultation with a solicitor specialising in settlement agreements for tomorrow morning, and have told my employer I will update them afterwards.

    Would appreciate any input or advice around the situation.

    I'm really not comfortable with signing up to something where I have to lie about why I am leaving just to appease my employers, and I'm not sure my integrity or potential damage to my professional reputation as a result of the inevitable 'whispers' that will follow are worth the extra few ££ I'd receive vs following the compulsory redundancy route.

    Sorry that was longer than I thought it was going to be - thanks if you've read this far!


    Tags: None

  • #2
    Is the agreement you are being asked to sign stating that you are giving up your rights to make future claims and then providing a list or schedule of those claims?


    I do not provide advice by PM although I may on occasion ask you to send me documents this way but any related advice will be provided back on your thread.

    I do my best to provide good practical advice, however I do so without liability.
    If you have any doubts then do please seek professional legal advice.


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    You are braver than you believe, smarter than you think and stronger than you seem.



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    Comment


    • #3
      It doesn't specifically list the claims, more of a vague, old style, you won't pursue any claims against us. Would it be helpful if I PM'd you a redacted version of what I've been asked to sign?

      Comment


      • #4
        Just to correct incorrect dates in first post - Para 6 should read 23rd March and 1st date in para 7 should read Tuesday 24th March

        Comment


        • #5
          Having slept on it, here's what I'm thinking.

          Once I've had the call with the solicitor this morning I plan to go back to my employers saying that I'm not prepared to sign the agreement as is and putting forward the options of:

          1. Managing my departure by way of mutual consent, which would be subject to a legally compliant settlement agreement, with input from both sides around expectations before being agreed

          Or

          2. Invoke the process for compulsory redundancy, with an assurance that a meaningful consultation will take place to explore alternatives to redundancy.

          Does that sound reasonable?

          Comment


          • #6
            Clcp77 sorry I have only just come online.

            How did the call with the solicitor go this morning?


            I do not provide advice by PM although I may on occasion ask you to send me documents this way but any related advice will be provided back on your thread.

            I do my best to provide good practical advice, however I do so without liability.
            If you have any doubts then do please seek professional legal advice.


            You can’t always stop the waves but you can learn to surf.

            You are braver than you believe, smarter than you think and stronger than you seem.



            If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

            Comment


            • #7
              I'm probably more confused than I was. The call I had was an initial assesment with an advisor at a firm that specialise in settlement agreements. As my employer has indicated that they don't consider it is a settlement agreement, she was of the view tjat it was probably actually a COT3 (although my understanding was that they are usually facilitated by ACAS).

              She offered to refer my details to their partner organization who specialize in employment law and said that I'd recieve a call back from them and they would be able to better advise.

              I sent them all the relevant correspondence and, rather tham a call, I've just had an email from them saying that the document is not an effective settlement agreement (which no one is disputing), and in order to receive advice from them I'd need to pay £300+vat for an initial consultation (which I just don't have).

              Comment


              • #8
                Just to add a further update. I asked my employer for an extension on the deadline of 10am tomorrow to sign the document to allow time for the solicitor to get back to me.

                I've had a response confirming that the document is neither a COT3 nor a settlement agreement, just setting out the terms I agree to in order to receive the enhanced payment. They are refusing to extend the deadline further. I have offered as a compromise that they send me an editable version of the document so that I can suggest amendments that would make me happy to sign - am yet to hear back.

                Comment


                • #9
                  Sorry to hear the call has left you more confused.

                  It is not a COT3 as that would be, as you quite rightly state, facilitated by ACAS if they are involved in something called Early Conciliation which is not the case here.

                  My general view is that although you to not automatically need a settlement agreement to cover this, if your employer is asking you to waive rights to bring a claim for issues that you could do so with less than 2 years service e.g. discrimination claims, whistleblowing, unpaid wages / holiday pay, breach of contract in the future or agree to certain behaviours i.e. keep confidential your reasons for leaving, albeit that should not extend to being allowed to disclose to future potential employers or recruitment agencies, then they need to do this under a settlement agreement. H


                  I do not provide advice by PM although I may on occasion ask you to send me documents this way but any related advice will be provided back on your thread.

                  I do my best to provide good practical advice, however I do so without liability.
                  If you have any doubts then do please seek professional legal advice.


                  You can’t always stop the waves but you can learn to surf.

                  You are braver than you believe, smarter than you think and stronger than you seem.



                  If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

                  Comment


                  • #10
                    Thanks - that's where I'm leaning too.

                    I'm going to draw up an amended version of what they have presented me as outlined above, explaining why I've taken out the bits about waiving my rights to potential future claims. I'll indicate that I'm still open to reaching an agreement via a formal settlement agreement if they want to insist on the inclusion, but I'm not happy to sign with that included without the benefit of legal advice.
                    Not that I have any intention of making any claims, but my undetstanding is that if I did sign the document as is it wouldn't be legally binding in any case?

                    Comment


                    • #11
                      OK - so they have refused to make the amendments I've asked for, saying that it is their standard voluntary redundancy template. I have until 10am tomorrow now to sign or revert to formal rednudancy consultation and lose the enhanced payment.

                      So my options now as I see it are a) I sign, but note that it is under duress and against legal advice or b) let them crack on with the compulsory redundancy process. I'm really not sure what to do now - it's causing me abridiculous amount of stress.

                      Comment


                      • #12
                        Is the package that they are offering better than statutory redundancy pay?

                        Or would you rather take your chances with their redundancy process?
                        Lawyer (solicitor) - retired from practice, now supervising solicitor in a university law clinic. I do not advise by private message.

                        Guides and handbooks for Litigants in Person - :

                        https://legalbeagles.info/forums/for...60#post1701560

                        Comment


                        • #13
                          OK - so they have refused to make the amendments I've asked for, saying that it is their standard voluntary redundancy template. I have until 10am tomorrow now to sign or revert to formal rednudancy consultation and lose the enhanced payment.

                          So my options now as I see it are a) I sign, but note that it is under duress and against legal advice or b) let them crack on with the compulsory redundancy process. I'm really not sure what to do now - it's causing me abridiculous amount of stress.

                          Comment


                          • #14
                            atticus that's what I'm currently weighing up. There's no statuory entitlement due to length of service. I'll get one month's pilon if made compulsorily redundant. If I sign their agreement i'll get an extra months net wages whilst I'm put on gardening leave due to their error as mentioned above, plus an ex gratia payment of 1 month's gross pay in return for agreeing not to tell anyone that my role has been made redundant. It's a pretty low paid role at a level far below my previous role that I took after being out of work for a very long time, so whilst the extra money would certainly be welcomed, it's not a huge amount in the scheme of things. I have gone back this evening saying that if they are not prepared to remove the non enforcable parts about waiver of legal rights etc then, pragmatically, I'd still be minded to sign. I'm also willing to adhere to their request not to make the fact that my role has been made redundant public, bit that I do want the agreed reference they have mentioned in the document to be agreed in advance and for clear expectations around how my departure will be communicated to colleagues to be included, neither of which I consider to be unreasonable asks in the circumstances.

                            Will see what they come back with in the morning, but as things stand I'm leaning towards just letting the process take it's course and not risking any potential smears on my professional reputation.

                            Comment


                            • #15
                              Clcp77 if you have reviewed my post #9 for any claims you could make with less than 2 years service and if none of these are applicable, then to waive your rights to make a claim, as your employer is asking you to do, then my opinion is, if this is not taken out of the document then, it is a mute point.

                              In respect of keeping confidential your reason for leaving, then you if you are happy to agree this for internal purposes, see if they will agree to you at least being honest with prospective employers and / or recruitment agencies as they will want to know. I would also certainly request, as they have offered, to get an agreed form of words in respect of your reference in advance.

                              Just a though that has come into my head whilst writing this post - can the internal position be that the company and you have mutually agreed to part company and nothing more needs to be said.

                              I appreciate the extra payment is "not a huge amount" but it is something more than you would be getting under statutory redundancy.


                              I do not provide advice by PM although I may on occasion ask you to send me documents this way but any related advice will be provided back on your thread.

                              I do my best to provide good practical advice, however I do so without liability.
                              If you have any doubts then do please seek professional legal advice.


                              You can’t always stop the waves but you can learn to surf.

                              You are braver than you believe, smarter than you think and stronger than you seem.



                              If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

                              Comment

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